Which contractor selection methodology?

Contractor selection plays essential role on development of business industries and any selection strategy is normally involved with various factors. This paper presents an empirical investigation to determine important factors influencing contractor selection to increase profitability. The proposed model of this paper is implemented for an Iranian constructor firm named Kayson Company located in city of Tehran, Iran. The study has been accomplished among top managers who worked for this firm. Using structural equation modeling, the study determines that five factors including performance, believes, flexibility, quality, price and services influence on profitability when a contractor is to be chosen.